Which of the following are criteria for determining whether to record an asset as a fixed asset?

Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic rec

WITCHER [35]

Answer:

Assume the note indicates that Seneca is to pay Arctic the $39,700 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

Dr Notes receivable 39,700

Cr Sales revenue 36,759.26

Cr Discount on notes receivable 2,940.74

Discount on notes receivable is a contra asset account that decreases the net amount of notes receivable.

Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021.

Dr Cash 39,700

Cr Notes receivable 36,759.26

Cr Interest revenue 2,940.74

Assume instead that Seneca is to pay Arctic the $39,700 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

Dr Notes receivable 39,700

Cr Sales revenue 34,036.35

Cr Discount on notes receivable 5,663.65

Discount on notes receivable is a contra asset account that decreases the net amount of notes receivable.

Assume instead that Arctic does not view the time value of money component of this arrangement to be significant, and that the note indicates that Seneca is to pay Arctic the $39,700 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

Dr Notes receivable 33,900

Cr Sales revenue 33,900

Explanation:

Non interest bearing notes must be recorded at present value, so we need to determine the present value of the payment:

Payment due December 21, 2021, PV = $39,700 / (1 + 8%) = $36,759.26

Payment due December 21, 2022, PV = $39,700 / (1 + 8%)² = $34,036.35

We use the discount on notes receivable account (contra asset account) to decrease the net value of notes receivable.

8 0

3 years ago

Omar, an individual in the 37% tax bracket, wants to shift some of his income to a new corporation in order to take advantage of

Dovator [93]

Answer:

Omar's plan of retaining earnings can work depending on the liquidity preference of the shareholders.

If the shareholders have interest in short-term liquidity benefit (i.e. dividend), then his plans might be frustrated and vice versa.

7 0

3 years ago

A(n) ________ program includes plans to help employees cope with stress, burnout, substance abuse, health problems, and family i

MrRissso [65]

Answer: Employee assistance program.

Explanation:

Employee assistance programs are programs designed by companies to: counsel, advise, follow up, and assist employees on personal or job related challenges they may be facing. The employee assistance programs are designed to ensure that the employees are in the best state of health in all areas.

3 0

3 years ago

You are the manager of a medium-sized farm with 100 acres of workable land. You can farm the land yourself, rent the land to ano

Ainat [17]

Answer:

The opportunity cost for a year will be $240,000.

Explanation:

The opportunity cost of any decision is the second-best alternative that is given up or sacrificed.

Here, the manager has a farm of 100 acres of land.

If he sells it to a developer for $40,000 per acre, he will get $4,000,000 for the whole land.

He can invest this amount and get an interest of 6% per year.

The opportunity cost of keeping the farm to the manager himself will be

= 6% of $4,000,000

= $\frac{6}{100}\ \times\ \$ 4,000,000$

= $240,000

3 0

3 years ago

The marginal propensity to consume tells us by how much ______ changes when ______ changes. a. consumption expenditure; disposab

Stells [14]

The marginal propensity to consume tells us by how much consumption expenditure changes when disposable income changes.

<h3>What is marginal propensity?</h3>

In economics, the marginal propensity to consume (MPC) is defined as the proportion of an aggregate raise in pay that a consumer spends on the consumption of goods and services, as opposed to saving it.

Key Takeaways. The marginal propensity to save (MPS) is the portion of each extra dollar of a household's income that's saved. MPC is the portion of each extra dollar of a household's income that is consumed or spent.

Learn more about marginal propensity here:

<h3>brainly.com/question/17930875</h3><h3 /><h3>#SPJ4</h3>

3 0

2 years ago